DO I EVEN NEED LIFE INSURANCE?
Yes. If anyone — your spouse, child, family member — relies on you financially, you need life insurance. Even if you are divorced and have an ex-spouse, a dependent sibling, or employer, life insurance is necessary.
ARE THERE ANY INSTANCES WHERE LIFE INSURANCE WOULDN’T BE NECESSARY?
If you are retired, are in a financially stable retirement situation, or have no financial dependents (meaning no one would take a financial hit because of your unexpected death), then you don’t technically need life insurance. But that does not mean you shouldn’t have it. There are great strategic, financial values and benefits to having life insurance.
HOW EXACTLY DOES LIFE INSURANCE WORK?
Although it may seem like it, life insurance doesn’t put a monetary value on you and your life. Rather, it compensates for the financial hit that is inevitable after an unexpected loss of life, which will affect your family members and those dependent on you. In exchange for the insurance premium payments you make, your life insurance company will pay a death benefit on your behalf to the beneficiary named in your policy. If you are the head of the household, life insurance could be critical to the financial health of your family. Life insurance helps those left behind, primarily family members and other financial dependents, cover the costs of debts, mortgages, and education. It also gives financial flexibility to your loved ones dealing with the loss, as well as provides general financial peace to family members and dependents.
IS LIFE INSURANCE EXPENSIVE?
While you would expect life insurance to cost an arm and a leg, it doesn’t have to. Given that you have good health and are a non-smoker, on average, you could pay around $60 a month for $1,000,000 worth of life insurance for a 20-year-term. That sounds incredibly reasonable. Again, the price depends on your health and needs; but overall, life insurance can be relatively affordable.